Chapter_01_2spp

Chapter_01_2spp - 1 Microeconomics Chapter 1 Introduction 2...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1 Microeconomics Chapter 1 Introduction 2 What is microeconomics? & Economics = the study of how people and societies deal with scarcity & Microeconomics = the branch of economics focusing on the economic behavior of individual decision-making units and how these individual decisions fit together 3 The three questions in (micro)economics 1. What to produce? & opportunity cost = what is given up in order to obtain something 2. How to produce it? & allocation of resources 3. Who gets the output? & allocation of resources & centrally planned economies vs. market system 4 Economic analysis & Models = a simplified description of some aspect of the economy & used to answer specific questions based on some simplifying assumptions & Two types of analysis/statements: & normative = descriptive statements (cause and effect) & positive = value judgments 5 Microeconomic foundations & How consumers choose what to consume & How firms choose how much to produce & How firms choose the amount of labor and capital to use & How do these actions coincide to bring about a market outcome 6 behind the...
View Full Document

Page1 / 10

Chapter_01_2spp - 1 Microeconomics Chapter 1 Introduction 2...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online